Tax implication of LIC Market Plus – I surrender value

POSTED BY Sibin ON January 24, 2014 12:05 pm COMMENTS (4)

Hi ,

I have paid premium for 3 years on LIC Market Plus – I policy. After completing 3 years 3 month I had surrendered the policy. I got the surrender value in Jan 2014. Can you tell me is the surrender value is taxable? I have not claimed any tax deduction for this policy during premium payment time.

Thanks

Sibin

4 replies on this article “Tax implication of LIC Market Plus – I surrender value”

  1. Bimal Kanti Dutta says:
    March 23, 2017 at 10:46 pm

    I have purchased LIC Market Plus-I in the year 2009 for Rs.50000/- in single premium. I have surrendered the same in the year 2016. Now my questions 1) Should I show the surrender value in my Tax Return for FY 2016-17 2) What would be the Tax implication for the same. An early reply is expected.
    Thanks.
    B.K.Dutta.

    Reply
    1. Manish Chauhan says:
      March 27, 2017 at 12:11 pm

      The proceeds from Insurance policies are not taxable !

      Reply
  2. Madhav says:
    August 28, 2016 at 8:57 pm

    Please tell income tax implications on getting surrender value invested in Lic market plus 1 by monthly sip method

    Reply
  3. ashalanshu says:
    January 24, 2014 at 9:32 pm

    Dear Sibin, no matter you claimed any tax benefit or not, being a pension policy, the surrender value is taxable in the year of reciept.

    Thanks

    Ashal

    Reply

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